Pub 25, Utah Sales and Use Tax General Information

25
Record Keeping Requirements
From Rule R865-19S-22
Every retailer, lessor or person doing business in Utah must
keep complete records used to determine their sales and
use tax liabilities. You must keep records for three years from
the date you fi le your tax return. Your records must be available
to the Tax Commission in their original format (paper or
electronic).
Your records should:
show all gross receipts from Utah sales or leases of tangible
personal property, products transferred electronically,
or services.
show deductions and exemptions claimed on sales tax
returns.
show bills, invoices and similar proof of all tangible personal
property and products transferred electronically bought
for sale, consumption or lease in Utah.
include original supporting documents (bills, receipts,
invoices, cash register tapes, etc.) and all schedules or
working papers used to prepare tax returns.
� Note: It is a third degree felony to knowingly sell,
buy, install, transfer, use or possess any automated
sales suppression device or phantomware
with the intent to defraud.
See additional record keeping requirements in Rule
R861-1A-35.
Reminders
The information in this publication is only a summary and
does not include all sales or use tax laws and rules.
1. You must collect sales tax on all taxable sales of tangible
personal property, products transferred electronically and
services to the fi nal consumer.
2. You must fi le a Sales and Use Tax Return for every period,
even when no tax is due.
3. You must notify the Tax Commission in writing if you
change business locations or add or close sales outlets.
4. If you stop doing business, you must notify the Tax Commission
in writing within 30 days of the fi nal date you
were required to collect sales tax.
5. You must keep your records for three years from the fi ling
date of a return.
6. Records are subject to audit by the Tax Commission.
7. Sales tax licenses are not transferable.
8. Goods purchased tax-free but used or consumed by you
or your company must be reported on the Sales and Use
Tax Return. You must pay use tax on goods you or your
company consume.
9. You must keep exemption certifi cates from your exempt
customers to prove nontaxable sales.
10. You must document out-of-state sales with a bill of lading
or other proof of shipment. The terms of the sale must
require shipment of the property across Utah’s borders
by the seller.
11. Round tax up to the next whole cent whenever the third
decimal place is greater than four.
Additional Information
Bundled Transactions
A bundled transaction is the retail sale of two or more separate
products that are sold for one combined price. If any
part of the bundled transaction is subject to tax, the entire
transaction is taxed unless the seller keeps separate records
of the tax-exempt portion of the transaction.
Car Washes
Assisted car washes are subject to sales and use tax. A car
wash is assisted if any of the cleaning or washing is performed
by a car wash employee.
A business location that sells both assisted and unassisted
car washes must collect tax on all its sales unless its assisted
and unassisted sales are recorded separately.
Example 1
A customer buys a car wash and the car is washed by
machines. This is an unassisted car wash and is not
subject to sales tax.
Example 2
A customer buys a machine car wash, but a car wash
employee runs a soapy brush over the car’s wheels at
the entrance. This is an assisted car wash and is subject
to sales tax.
Example 3
As a fundraising activity, a scout troop offers to dry cars
coming out of a car wash. The scouts are not paid by
the car wash, so their labor is not a factor in whether
the car washes are assisted or unassisted.
Cigarettes and Tobacco Products
A business selling cigarettes and/or tobacco products must
be licensed for each selling location. Apply on form TC-69.
Find forms online at tax.utah.gov/forms.
Cigarette tax is paid by buying stamps from the Tax Commission.
Only registered and bonded businesses may buy,
receive and affi x stamps. Cigarette stamps must be affi xed
to each package within 72 hours of receipt of the package.
Any cigarette pack without a Utah stamp is subject to a $25
penalty and confi scation.
Tobacco products tax is due from the fi rst buyer within
Utah. A retail store must be registered and bonded if it buys
directly from an out-of-Utah source not collecting the tax. Pay
the tobacco products tax with form TC-553, due the last day
of the month following each calendar quarter.
Consumers buying cigarettes or tobacco products online
must pay the sales tax and cigarette or tobacco products tax
on form TC-720C.
The sale of cigarettes and/or tobacco products is subject to
state and local sales tax. The amount subject to sales tax
includes the cigarette tax or the tobacco products tax.
page 14